PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
NASDAQ:PZZA - Nasdaq - US6988131024 - Common Stock - Currency: USD
Taking everything into account, PZZA scores 5 out of 10 in our fundamental rating. PZZA was compared to 134 industry peers in the Hotels, Restaurants & Leisure industry. While PZZA is still in line with the averages on profitability rating, there are concerns on its financial health. PZZA has a decent growth rate and is not valued too expensively. PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year PZZA was profitable.
PZZA had a positive operating cash flow in the past year.
In the past 5 years PZZA has always been profitable.
In the past 5 years PZZA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PZZA (8.65%) is better than 81.95% of its industry peers.
PZZA has a better Return On Invested Capital (16.55%) than 86.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PZZA is significantly above the industry average of 13.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.65% | ||
| ROE | N/A | ||
| ROIC | 16.55% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
1.3 Margins
PZZA has a Profit Margin (3.77%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PZZA has grown nicely.
Looking at the Operating Margin, with a value of 6.42%, PZZA is in line with its industry, outperforming 41.35% of the companies in the same industry.
In the last couple of years the Operating Margin of PZZA has grown nicely.
The Gross Margin of PZZA (27.67%) is worse than 80.45% of its industry peers.
In the last couple of years the Gross Margin of PZZA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.42% | ||
| PM (TTM) | 3.77% | ||
| GM | 27.67% |
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PZZA is creating value.
Compared to 1 year ago, PZZA has more shares outstanding
Compared to 5 years ago, PZZA has more shares outstanding
Compared to 1 year ago, PZZA has an improved debt to assets ratio.
2.2 Solvency
PZZA has an Altman-Z score of 3.82. This indicates that PZZA is financially healthy and has little risk of bankruptcy at the moment.
PZZA has a better Altman-Z score (3.82) than 82.71% of its industry peers.
PZZA has a debt to FCF ratio of 14.46. This is a negative value and a sign of low solvency as PZZA would need 14.46 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.46, PZZA perfoms like the industry average, outperforming 49.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.46 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.91
WACC8.67%
2.3 Liquidity
A Current Ratio of 0.86 indicates that PZZA may have some problems paying its short term obligations.
The Current ratio of PZZA (0.86) is comparable to the rest of the industry.
PZZA has a Quick Ratio of 0.86. This is a bad value and indicates that PZZA is not financially healthy enough and could expect problems in meeting its short term obligations.
PZZA has a Quick ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for PZZA have decreased strongly by -24.81% in the last year.
Measured over the past years, PZZA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.87% on average per year.
The Revenue has decreased by -2.77% in the past year.
The Revenue has been growing slightly by 4.93% on average over the past years.
EPS 1Y (TTM)-24.81%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-46.27%
Revenue 1Y (TTM)-2.77%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.85%
3.2 Future
PZZA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.87% yearly.
PZZA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y-27.12%
EPS Next 2Y-0.1%
EPS Next 3Y10.64%
EPS Next 5Y17.87%
Revenue Next Year2.82%
Revenue Next 2Y3.25%
Revenue Next 3Y3.75%
Revenue Next 5Y6.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PZZA is valuated rather expensively with a Price/Earnings ratio of 24.14.
66.17% of the companies in the same industry are more expensive than PZZA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PZZA to the average of the S&P500 Index (27.45), we can say PZZA is valued inline with the index average.
The Price/Forward Earnings ratio is 20.98, which indicates a rather expensive current valuation of PZZA.
PZZA's Price/Forward Earnings is on the same level as the industry average.
PZZA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 20.98 |
4.2 Price Multiples
60.90% of the companies in the same industry are more expensive than PZZA, based on the Enterprise Value to EBITDA ratio.
PZZA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PZZA is cheaper than 63.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.53 | ||
| EV/EBITDA | 11.58 |
4.3 Compensation for Growth
The decent profitability rating of PZZA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.62
EPS Next 2Y-0.1%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.79%, PZZA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.60, PZZA pays a better dividend. On top of this PZZA pays more dividend than 89.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PZZA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
5.2 History
The dividend of PZZA is nicely growing with an annual growth rate of 8.81%!
PZZA has been paying a dividend for at least 10 years, so it has a reliable track record.
PZZA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.81%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
78.06% of the earnings are spent on dividend by PZZA. This is not a sustainable payout ratio.
PZZA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.06%
EPS Next 2Y-0.1%
EPS Next 3Y10.64%
49
-0.88 (-1.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners118.63%
Inst Owner Change-5.49%
Ins Owners1.13%
Ins Owner Change4.24%
Market Cap1.60B
Analysts74.55
Price Target48.72 (-0.57%)
Short Float %12.76%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Yearly Dividend1.86
Dividend Growth(5Y)8.81%
DP78.06%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.12%
Min EPS beat(2)0.08%
Max EPS beat(2)24.17%
EPS beat(4)3
Avg EPS beat(4)8.64%
Min EPS beat(4)-1.65%
Max EPS beat(4)24.17%
EPS beat(8)5
Avg EPS beat(8)7.81%
EPS beat(12)6
Avg EPS beat(12)4.1%
EPS beat(16)9
Avg EPS beat(16)5.66%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)0.85%
Revenue beat(4)1
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-4.34%
Max Revenue beat(4)0.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.97%
Revenue beat(12)1
Avg Revenue beat(12)-2.85%
Revenue beat(16)3
Avg Revenue beat(16)-2.11%
PT rev (1m)-7.35%
PT rev (3m)-16.01%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-32.09%
EPS NY rev (1m)-6.28%
EPS NY rev (3m)-31.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.14 | ||
| Fwd PE | 20.98 | ||
| P/S | 0.78 | ||
| P/FCF | 29.53 | ||
| P/OCF | 12.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.58 |
EPS(TTM)2.03
EY4.14%
EPS(NY)2.34
Fwd EY4.77%
FCF(TTM)1.66
FCFY3.39%
OCF(TTM)3.85
OCFY7.85%
SpS63.04
BVpS-13.19
TBVpS-15.51
PEG (NY)N/A
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.65% | ||
| ROE | N/A | ||
| ROCE | 21.54% | ||
| ROIC | 16.55% | ||
| ROICexc | 17.82% | ||
| ROICexgc | 20.55% | ||
| OM | 6.42% | ||
| PM (TTM) | 3.77% | ||
| GM | 27.67% | ||
| FCFM | 2.63% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
ROICexc(3y)20.56%
ROICexc(5y)20.67%
ROICexgc(3y)23.77%
ROICexgc(5y)24.21%
ROCE(3y)24.87%
ROCE(5y)24.07%
ROICexcg growth 3Y-9.79%
ROICexcg growth 5Y44.21%
ROICexc growth 3Y-9.04%
ROICexc growth 5Y45.25%
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
F-Score6
Asset Turnover2.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 14.46 | ||
| Debt/EBITDA | 3.83 | ||
| Cap/Depr | 102.26% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.19% | ||
| Profit Quality | 69.9% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.82 |
F-Score6
WACC8.67%
ROIC/WACC1.91
Cap/Depr(3y)124.88%
Cap/Depr(5y)117.36%
Cap/Sales(3y)3.61%
Cap/Sales(5y)3.22%
Profit Quality(3y)80.41%
Profit Quality(5y)690.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-24.81%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-46.27%
EPS Next Y-27.12%
EPS Next 2Y-0.1%
EPS Next 3Y10.64%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-2.77%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.85%
Revenue Next Year2.82%
Revenue Next 2Y3.25%
Revenue Next 3Y3.75%
Revenue Next 5Y6.01%
EBIT growth 1Y-17.31%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year39.87%
EBIT Next 3Y18.66%
EBIT Next 5Y19.41%
FCF growth 1Y16.49%
FCF growth 3Y-33.5%
FCF growth 5Y7.27%
OCF growth 1Y-5.42%
OCF growth 3Y-16.73%
OCF growth 5Y11.55%